Question And Answer
Subject: Taxability of One time maintainace deposit collected by Developer
Querist: Prakash
Answered by:
Tags: , ,
Date: June 2, 2023
Query asked by Prakash

Assessee is promoter and Builder.  During the  course of carrying of business, assessee accepted one time deposit from flat purchaser for future maintainance of the building.  AO is the opinion that it is taxable in the year of receipt , where as assessee is saying that it is not taxable in his hands as assessee is only custodian and after deduction of expenses incurred for maintenance, will be handover the balance to society .

Whether assessee’s stand is correct ? Or AO is correct ?

Pl guide .

File Uploaded: Not Available

The assesee’s stand is correct. However, this has to be explained and demonstrated to the Ld. AO’s satisfaction though documents.

Disclaimer: This article is only for general information and is not intended to provide legal advice. Readers desiring legal advice should consult with an experienced professional to understand the current law and how it may apply to the facts of their case. Neither the author nor and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this article nor for any actions taken in reliance thereon. No part of this document should be distributed or copied (except for personal, non-commercial use) without express written permission of

Leave a Reply

Your email address will not be published. Required fields are marked *